Study Guide to Man, Economy, and State with Power and Market

Chapter 10: Monopoly and Competition 133
Study Questions
1. How are anticartelists proposing a caste system?
(pp. 640–41)
2. In what sense could Tiger Woods be considered
a monopolist?
3. In New York City, cab drivers must obtain a
medallion from the government in order to
legally operate. Does such a restriction allow
cabbies to earn long-run profits? (p. 679)
4. Why might a large firm be at a disadvantage in a
“cutthroat” price war with a small competitor?
(p. 684)
5. If a firm is caught selling “below costs,” isn’t this
proof of strategic behavior designed to hurt its
competitors rather than simply pleasing customers?
(p. 687)
6. Rothbard rejects the coherence of a “competitive”
price because it cannot be distinguished
from the free market price. But what about, say,
the pure rate of interest? In practice, the Austrian
can’t tell what portion of the actual market
rate of interest is due to time preference, risk,
inflation, etc. (pp. 696–97)
7. Could there be a voluntary union that achieves a
restriction in output and higher wages for union
members? (p. 711)